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Peregrine Financial Files for Chap. 7 Bankruptcy

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  • Description

    FBN’s Diane Macedo breaks down the stories moving the markets around the world.

  • Duration 4:52
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This is this Imus in the morning.

I'm on the -- Anyone peregrine financial group has filed for chapter seven bankruptcy after regulators accused the brokerage firm.

Of misappropriating more than 200 million dollars in customer funds.

Fox Business is not a -- newsroom with more on this Robert what does this song mean for the firm's clients what -- regulators and -- judge have -- that there accounts but could be frozen or even as they're trying to liquidate and they would not be able to collect.

-- cash out of this on the Commodity Futures Trading Commission is looking into what happened -- 215 million dollars in customer money.

Regular say this shortfall goes back to February of 2010.

Just last month the firm told regulators it had some 400 million bucks in customer assets now the Commodity Futures Trading Commission has accused the firm and -- founder Russell -- in north senior.

A fraud customer funds violation.

And making false statements.

What -- alleging here is that there is intentional fraud intentional fraud IE somebody lied.

So when you do spot checks I mean year -- if somebody's gonna -- if somebody's gonna try to break the law.

That's a pretty tough thing to find.

Now according to Reuters peregrine financial founder Russell wasn't our senior covered up the fund shortfall work -- -- by forging documents was north apparently attempted suicide earlier this week.

And an end note alluded to a crime that had been committed his son reportedly share that note with employees late Monday Diane.

Yeah Robert grant from the newsroom thanks -- grow -- Let's take a look at the markets -- here in the US -- -- green arrows across the board all morning Dow futures are up by 53.

The S and he's up by about five and a half the nasdaq's up by eight and a half.

Over in Europe markets -- sort of searching for direction their luxury shares or taking a hit.

After burglary reported at sales slowdown you could see London just reverse direction up by just about a point.

Paris is so dumb but only by about 67 points there in Frankfurt's in the green.

By about 34 in the figure closer look now what's moving these markets with CMC markets analyst Michael Hewson over in London.

Of Michael Greek government officials say the country has enough cash to operate until at least early next month possibly longer.

Despite earlier warnings that it could right -- right out as soon as this month so.

Should -- find some relief in this updated outlook and if so how much.

I think it's small amount of relief -- and absolutely and done.

But you know doesn't really solve the underlying problems that Europe facing not really -- think I -- -- I'm increases I'm living from month to month.

I know obviously this morning inn -- Spanish parliament mr.

rajoy is Spanish prime minister announced.

Home -- -- the budget cuts over the next city is its local 65.

Billion euros.

Well that's some massive amount of counts in an economy for an economy that -- kinds of being recession -- The outlook for Europe at the moment doesn't look particularly good given the very very benign growth outlook though way -- seeing globally.

And I could you -- -- those Spanish austerity measures of that the European leaders there are still sort of in the process of negotiating -- bank -- for Spain and working out how old don't know what the conditions attached are going to be.

Do you think those austerity measures will affected all of kind of conditions are tied to that bank bail out.

When these are part of the conditions that are essentially tied to that bank by now I'm conditionality is essentially walk.

The northern coal.

Off and -- on spine in return for this money to -- amazed that the conditionality he's going to potentially pay.

Self defacing and it's not really addressing the core issue that relates to Spanish banks in the factories who they are pretty much -- -- -- just pumping more money into them is not really can resolve the underlying issue that.

On during another problem is the -- Italy said it may want to tap eurozone aid now to help ease its borrowing costs as leaders their struggle to get a handle.

On their debts so what do you make of that.

Well that's a bit of a concern because that Italian prime minister Mario Monti he's been very instrumental in actually pushing through a raft of reforms over the cost.

-- -- full months he's going to be standing down.

In March next year so essentially that took -- it that could potentially -- -- vacuum.

In Italy and more than that mr.

Berlusconi who he replaced the year ago.

Is announcing that he's going to stand for reelection and that really then puts another.

Whole realm of uncertainty into the political situation within -- -- as well so investors -- -- that very kindly have a.

All right -- Michael Hewson from CMC markets over London thanks Michael.

Thank you done.

Let's take a look at the commodities now oil and gold are mixed at the moment -- up by about a dollar thirty having an 85 dollars a barrel -- down.

By about -- A buck fifty trading at 1578.

Announced.

Imus in the morning continues right now on Fox Business giving you the power to prosper.

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